Abstract
This paper examines the relationship between exports, imports, and GDP in Palestine. For this purpose, annual data for the periods 2000-2020. Johansen's test for cointegration analysis was used to estimate the var model and Granger-Causality tests. The least squares (OLS) regression test according to the result of the analysis concluded It turns out that there is no causal relationship between exports, imports and GDP, as shown by Granger's test, and when conducting VAR test, it was found that there is no effect of exports on GDP, but unless it is expected that there will be a positive effect of imports on GDP in Palestine. Through the results, we can confirm that imports affect GDP, which means that it is one of the factors of economic growth in Palestine.
References
Abu Aida, O. (2013). The performance of Palestinian exports and their impact on economic growth (1994–2011). Journal of Al-Azhar University in Gaza, Humanities Series, 15(1), 347–376.
Abu Jamea, J. (2005). The performance of the Palestinian external trade seen compared to Egypt, Jordan, and Syria during the period 1968–2000. Journal of the Islamic University, 13(2), 59–75.
Abu Sharara, A. A. (2006). International economics: Theories and policies. Dar Al Masirah for Publishing, Distribution, and Printing.
Abu-Shihab, R., Soufan, T., & Abdu, S. (2014). The causal relationship between exports and economic growth in Jordan. International Journal of Business and Social Science, 5(3), 302–308.
Afaf, A. S., & Hussain, M. A. (2015). Impact of exports and imports on economic growth: Evidence from Tunisia. Journal of Emerging Trends in Economics and Management Sciences, 6(1), 13–21.
Ahmed, A. A. (2001). An introduction to international business administration. Dar Al-Marikh Publishing House.
Akhter, M. (2015). The impact of export and import on economic growth in Bangladesh. World Vision, 9(1), 66–81.
Al-Astal, F. (2014). Palestinian foreign trade and its role in achieving economic development. Al-Azhar University.
Alavinasab, S. M. (2013). Exports and economic growth: Evidence from Iran. Middle-East Journal of Scientific Research, 18(7), 936–941.
Ali, J. A., Hasan, H., & Oudat, M. S. (2021). The relationship between exports, imports, and economic growth: Using cointegration analysis. Polytechnic and Architecture Engineering, 58(1). https://doi.org/10.17762/pae.v58i1.2068
Badwan, N., & Atta, M. (2021). Financial capital inflows, manufacturing exports, and economic growth in Palestine: A threshold regression analysis. Asian Journal of Economics, Business, and Accounting, 21(3), 56–71. https://doi.org/10.9734/ajeba/2021/v21i330362
Bakar, S., & Mabrouki, M. (2017). Impact of exports and imports on economic growth: New evidence from Panama. Journal of Smart Economic Growth, 2(1), 67–79.
Bakari, S., Fakraoui, N., & Mabrouki, M. (2020). The contribution of domestic investment, exports, and imports to economic growth: A case study of Peru. Munich Personal RePEc Archive.
Blavasciunaite, D., Garsviene, L., & Matuzeviciute, K. (2020). Trade balance effects on economic growth: Evidence from European Union countries. Economies, 8(54). https://doi.org/10.3390/economies8030054
Chokri, T., El Ammari, A., & Bouchrika, A. (2018). Optimal taxation and economic growth in Tunisia: Short and long-run analysis. Journal of Reviews on Global Economics, 7, 157–164. https://doi.org/10.6000/1929-7092.2018.07.14
Fannoun, M. I. (2019). Exports, imports, and economic growth: Evidence from Palestine. Hebron University.
Ghozlan, M. I. (1975). Summary of international economic relations and history of economic thought. Egyptian University House.
Güngör, T., & Bernard, K. (2014). An empirical study on import, export, and economic growth in Albania. Academic Journal of Interdisciplinary Studies, 3(3), 389–395.
Hatem, S. A. (2005). Recent trends in international economics and international trade. The Egyptian Lebanese House.
Halder, P. (2019). Analysis of the impact of exchange rate, inflation, export, and import on gross domestic product in Bangladesh. Business, Management and Economics Research, 5(12), 170–175. https://doi.org/10.32861/bmer.512.170.175
Helles, M. (2016). The foreign trade gap in the Palestinian economy and how to limit its expansion. [Unpublished master’s thesis]. Al-Azhar University.
Hoque, M. M., & Yusop, Z. (2010). Impacts of trade liberalization on aggregate import in Bangladesh: An ARDL bounds test approach. Journal of Asian Economics, 21(1), 37–52. https://doi.org/10.1016/j.asieco.2009.09.004
Hossain, M., & Dias, K. N. (2004). Exports and economic growth in Bangladesh: Has manufacturing exports become a new engine of export-led growth? The International Trade Journal, 18(4), 303–334. https://doi.org/10.1080/08853900490518190
Khan, D. (2012). Exports, imports, and economic growth nexus: Time series evidence from Pakistan. World Applied Sciences Journal, 18(4), 538–542.
Krugman, P. R. (1984). Import protection as export promotion. In H. Kierzkowski (Ed.), Monopolistic competition in international trade (pp. XX–XX). Oxford University Press.
Lawrence, R. Z., & Weinstein, D. E. (1999). Trade and growth: Import-led or export-led? Evidence from Japan and Korea. NBER Working Papers, 7264. https://doi.org/10.3386/w7264
Mitra, P., & Khan, G. S. (2012). Impact of trade openness, FDI inflows, and total exports on economic growth of India: An econometric approach. IOSR Journal of Economics and Finance, 4(5), 60–68. https://doi.org/10.9790/5933-0456068
Ozurumba, B. A., & Chigbu, E. E. (2013). Non-oil export financing and Nigeria's economic growth. Interdisciplinary Journal of Contemporary Research in Business, 4(10), 133–148.
Palestinian Monetary Authority. (2020). Total value of imports, exports in goods, net balance, and trade transactions volume in Palestine for 1996–2019.
Qaddo, W. J. (2009). International marketing. Dar Al-Maysara for Publishing, Distribution, and Printing.
Qassem, A. A. (2018). The reality of the export sector in Palestine and the obstacles to its development (1996–2016): A case study of the Gaza Strip. The Islamic University.
Ramos, F. F. (2002). Exports, imports, and economic growth in Portugal: Evidence from causality and cointegration analysis. Economic Modeling, 18, 613–623. https://doi.org/10.1016/S0264-9993(00)00055-9
Ruranga, C., & Musabanganji, E. (2019). Productivity and competitiveness of Rwandan agriculture: A case study of the maize sector. AGROFOR International Journal, 4(1), 32–40. https://doi.org/10.7251/AGRENG1901032M
Titus, O. A. (2007). Causality between exports, imports, and economic growth: Evidence from transition economies. Economics Letters, 94, 389–395. https://doi.org/10.1016/j.econlet.2006.08.025
Yüksel, S., & Zengin, S. (2016). Causality relationship between import, export, and growth rate in developing countries. International Journal of Commerce and Finance, 2(1), 147–156.
Zahee, R., Khattak, S. W., Ashar, H., & Zaib, K. (2014). Impact of exports and imports on GDP growth rate in Pakistan: Time-series data from 2000–2010. International Journal of Research in Applied, Natural and Social Sciences, 2(7), 29–34.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright (c) 2023 Array